Tunkillia Gold Project

WPG Resources Ltd acquired the Tunkillia Gold Project in May 2014 and has 100% of all minerals in the area which covers 1,604 square kilometres.

The Tunkillia Gold Project is located some 550 km northwest of Adelaide and 70 km southwest of Tarcoola in the Gawler Craton and was first discovered in 1996.

The project comprises three exploration licences:

EL 5901 Lake Everard 1,088 sq km

EL 5670 Lake Everard West 149 sq km

EL 5790 Cooritta Hill 367 sq km

An in depth review of the potential development scenarios for Tunkillia including optimisation studies has been carried out enabling the Company to set a platform to redefine the project parameters and advance an accelerated exploration and development strategy.

Geology & exploration

The historical exploration data in the region has been based on extensive calcrete gold geochemical sampling and it is estimated that a total of 12,084 calcrete samples have been collected and analysed over the area of the Tunkillia tenements.

Previous explorers then defined prospects through follow-up of spot high sample results with closer spaced calcrete sampling and then testing the ensuing anomalies with either RAB or aircore and RC drilling.

This method led to the discovery of the large Tunkillia gold deposit at the 223 prospect.

The historical data that was acquired by WPG also includes detailed aeromagnetic, TEMPEST airborne EM and in-fill gravity surveys completed over parts of the Lake Everard tenement (EL 4812) mostly focussed on the Yarlbrinda Shear Zone. Further data includes gradient array IP, biogeochemical sampling, CHIM/MMI geochemical sampling and spectral scanning of RC chips.

Metallurgical testwork indicates average CIL recoveries for gold of 95.4% in the oxide zone, and 89.9% in the primary zone; average silver recoveries are 85.2%. WPG notes that the total estimated resource grade set out below is 36% higher than previously published.

A drilling program on priority prospects within the Tunkillia exploration tenements is now being prepared and will be submitted to DSD.

14 prospects have been identified for priority exploration follow-up from a total of 33 targets generated from a major review of historical data compiled by previous explorers.

Resource

A detailed review of the Tunkillia gold project data confirmed that the resource estimate for the main 223 deposit can be enhanced at higher cut-off grades allowing a wide degree of flexibility for strategic development options.

The resource estimate was recast using a 0.5 g/t cut-off grade in the oxide zone, and a 1.0 g/t cut-off grade in the primary zone.

The information pertaining to the Tunkillia gold project Mineral Resource estimate was disclosed in WPG’s ASX announcement “Plums found in the Tunkillia pudding – resource estimate enhanced at higher cut-off grade” dated 4 February 2015 and is available to view at www.wpgresources.com.au.

Figure 1 – Tunkillia Project Prospect Location Map

On 1 June 2015 DSD granted the Company’s Mineral Claim for the Tunkillia gold project and Tunkillia Gold is now in the process of preparing the MLP for submission.

DSD has confirmed that it will continue to work closely with Tunkillia Gold to progress the approvals processes for the project.